Annual Report of the Finance Committee

ANNUAL REPORT OF THE BOARD OF SELECTMEN

2004 was a steadier-going year from recent years past and quite productive. The Town’s financial position, although budgets remain tight, is solidly in the black. The Selectmen appreciate all the efforts of Town Management and Staff for their continuing to deliver as many services as can be accommodated within the budget. The Collector’s doubled efforts of administrating quarterly tax bills have greatly helped the available cash to the Treasurer and to the Town. We are grateful to the taxpayers for paying these quarterly bills and contributing to these smooth financial operations.

Some of the major accomplishments the Town experienced in 2004 include the Library Trustees’ successful initiation of the Library’s Accessibility, Renovation and Expansion Project without requesting any further taxpayer monies. They applied for and received a Massachusetts Library Board of Commissioners grant for $1.4 million, a Community Development Block Grant in the amount of $800,000 and raised contributed funds in the amount of $492,000. We are pleased and grateful for all of their hard work.

The Historical Society, the Ashby Square and Compass Club and the Ashby Cultural Council, together, contributed to the “Life in Ashby Wall” project, a photographic snapshot of the history of everyday life in Ashby. This is a permanent display in our Selectmen’s meeting room on the second floor of the Lyman Building and we continue to welcome people to come and enjoy it.

The Playground work at Allen Field is nearly completed except for the fence. The volunteer Playground Committee has done an excellent job at bringing this playground project all the way from raising the funds to purchasing and installing the equipment and we thank them for their dedication and contribution to Ashby’s younger generation.

Also during 2004 the Town has developed its first enterprise: The Ashby Recycling Center and Transfer Station. Thanks to the efforts of the Solid Waste Committee, members of the Board of Health, Michael McCallum, Alan Pease and the Town Administrator, this new department is established and the site at Greenville Road is partially constructed. We expect operations to begin early in the new year.

Ashby Emergency Medical Services has acquired a new ambulance and a new director, Paul Rekos, during this year. We join the townspeople in our gratitude to both of these new additions as well as to the EMS department.

Ashby’s acquisitions include land that was generously given to the Town. Adams Construction gave the Town land to expand West Cemetery and William Arnold enhanced the Town’s conservation land with his farm contribution. We thank these civic-minded residents.

In 2004 we gained a new Police Chief, Steven McLatchy, who has been doing an excellent job and, along with his staff, has been providing high quality services. On a sad note, we had to say good-bye to our long time Dog Officer, Allen Phillips, upon his passing in September. We will always be grateful to Mr. Phillips for his dedication and compassion for Ashby’s animals.

We look back on 2004 with satisfaction as we look forward to 2005 with anticipation of the many enrichments we will see in our Town.

Respectfully,

Gerard Houle, Chairman

Michael McCallum

Peter McMurray

ANNUAL REPORT OF THE FINANCE COMMITTEE

General

After each Annual Town Meeting, the Finance Committee traditionally meets to review the budget process and to analyze the fiscal impact taken by the town. The committee works all year to continuously monitor individual expense lines. The overall goal of the committee is a continuous refinement of the budget process in order to create greater understanding of Ashby’s finances for all town officials and the residents of Ashby.

The Finance Committee has had numerous committee member changes since the last annual report. There are four new members on the committee including a new chairman.

Annual Budget Process

The Finance Committee meets twice monthly all year, with additional meetings set as needed. As a result of changes to the budget process over the last two budgets, the Town Administrator now meets with all department heads in the fall to address departmental financial needs for the upcoming budget. The Town Administrator then met with the Finance Committee to review the first draft of the budget. The Finance Committee will analyze the preliminary budget of the department heads and the revenue projections supplied by the Finance Officers of the town. Before the budget is finalized, meetings may be scheduled with the Board of Selectman to advise on prioritizing operating budget items and warrant articles. The Finance Committee will then prepare the annual budget for approval by the town at annual town meeting.

Summary

The town continues to grow at a steady rate, but even with the new growth, the town revenues are limited. While the new growth increases the available revenues it also increases the level of funding needed for services such as Police, Fire and the Highway departments. Our school assessment took a major increase this year to get caught up from minimal increases over recent years.

Respectfully Submitted,

CAPITAL PLAN COMMITTEE (CPC) REPORT

For some time now the Capital Plan Committee has been working with Department

Heads and Committees to establish a list of equipment, facilities and land needs for a five-year time span. In addition, the goal was to establish a priority of what should be funded each fiscal year to have a stable expense level for these items. This would be beneficial to the Town, as it would provide a projection of funds needed. This has been a learning experience for both groups. This Plan Document now exists but without the priority schedule of what shall be funded when. This element needs to be addressed by the Selectmen, Department Heads and Finance Committee in order to have “formal adoption” of the Capital Plan.

Against this background, the State has approved the establishment of the Capital Plan Stabilization line item or Capital Plan Account that the Town voted and approved on May 1st 2004. The concept is to fund the account with free cash or borrowed money, which can only be used for items in the Plan. For the past decade or so the Town has been very conservative and essentially under estimated Town receipts. Even though there has not been any annual large return of budget funds unused by departments, the result is each and every year we have a significant level of free cash. A good portion of this cash is spent on warrant articles for equipment. By this approach little visibility is given to long range and larger expenses such as new, expansion or major repair of facilities. As the Capital Plan is formally adopted, strategies for additional funding for bonding for long-term loans can be established and factored into the total cost of the plan.

Properly executed there should be no annual warrant request by Departments or Committees for equipment, facilities or land that are not in the Capital Plan with Time Table agreed to by the Departments, Committees, Selectmen and Voters. The standard Stabilization Fund the Town has had for several years, is the emergency money for unexpected Town needs.

In the FY06 budget this situation and formal adoption of the plan needs to be decided. Please contact any member of the CPC to review the plan.

Tom Kenny (resigned)

BOARD OF ASSESSORS

The Board of Assessors are responsible for the valuation of real estate and personal property subject to taxation. The Registry of Motor Vehicles is responsible for motor vehicle valuations and supplies the data for excise bills. Assessed values for all three are based on “full and fair cash value” as of the January 1st preceding each fiscal year.

Our office requires substantial information to carry out its valuation mandate. Much of the office’s effort centers around maintaining ownership records, tax maps, and property characteristic data. This data is constantly changing. Fiscal Year 2004 saw a continuing increase in land subdivisions, home construction and improvements to existing housing. Every building permit for a new house, addition, or remodel requires a follow-up visit from our office. The increase in inspection activity, time spent in setting up new records, maintaining existing data, and dealing with all of the political and economic implications brought on by growth keeps the office unusually busy. Office hours from 9:00 AM to noon, Monday through Friday. The Board meets at 7:00 PM on the second Wednesday of the month.

Respectfully, Harald Scheid, Regional Tax Assessor

Oliver Mutch, Chairman

Dondi LaRue, Administrative Assessor, Member,

Jodi L Masse, Member

Fiscal 2004 Assessments and Revenues by Major Property Class

Property Class

Valuation and Tax History

Accounts

Fiscal Year 2004 Abstract of Assessments

Accts

Class Valuation

Avg.Value

Assessors’ Account for Exemptions and Abatements

New Growth Revenue

REPORT OF THE COLLECTOR

INTRODUCTION

Massachusetts law states you are responsible for the tax payment even if a bill is not received. The Collector’s office is open between 9:00 and Noon, Monday through Friday and the telephone is 978 386-2427 (Ext 13).

ABATEMENTS & REFUNDS

Please read the information printed on the back of your tax bill. For Real Estate and Personal Property tax rate or valuation issues, contact Ashby’s Board of Assessors at 978 386-2427 (Ext 15). Contact the Assessor’s office if you transfer, sell, or gift a motor vehicle and want an abatement or refund or if you receive an excise bill for a vehicle you no longer own. Ignoring an Excise bill may prohibit registration and/or license renewal. For additional assistance, the Registry of Motor Vehicles may be contacted at 800 858-3926.

THE TEMPORARY MOTOR VEHICLE AMNESTY PROGRAM

The 2004 Temporary Amnesty Program began on January 2, 2004 and ended on May 3rd. Sixty-three taxpayers paid $5,728.35 in old taxes for one hundred and six 1986 through 1997 tax bills and had $7,182.86 in interest and $3,400.00 in demands and warrant collection fees waived. Because eleven taxpayers did not take advantage of the program, the interest and fees were reinstated to their seventeen original tax bills. An Ashby By-Law prevents the Collector from signing local license and permit applications for delinquent taxpayers.

REAL ESTATE TAX TAKINGS

A Tax Taking (Tax Title) places a lien on property with delinquent taxes. On June 2, 2004, thirty-seven Subsequent Tax Takings, totaling $25,719.03, were certified to the Treasurer and added to existing Tax Takings. Ten new Tax Takings, totaling $12,121.61, were advertised in a local newspaper on October 15,2004 and certified to the Treasurer on October 29, 2004.

DELINQUENT PERSONAL PROPERTY & MOTOR VEHICLE TAXES

Personal Property and Motor Vehicle Courtesy Notices were mailed to delinquent tax payers alerting them the District Court will be requested to issue a summons requiring that person to appear and submit to an examination as to whether the tax, interest charges and fees are owed. The Court will render a decision if it finds that the debt is owed and there is sufficient property and an ability to pay. Court costs will be added to the delinquent amounts due.

COLLECTOR’S RECEIVABLES

The following chart reflects the Collector’s receivables for calendar year 2004.

These are the tax amounts that were due the town on 01/01/04 and on 12/31/04.

REAL ESTATE PERSONAL PROP MOTOR VEHICLE

Year 01/01/04 12/31/04 01/01/04 12/31/04 01/01/04 12/31/04

2005 -- 57,870.08* -- * -- --

2004 54,164.02 3,137.96 -- 155.04 -- 14,820.82

2003 93.73 -- 190.14 26.78 10,458.40 3,398.98

2002 -- -- 15.84 -- 3,345.93 1,068.85

2001 ------2,057.40 1,472.61

2000 ------1,135.94 980.53

1999 ------872.71 872.71

1998 ------216.88 216.88

1997 ------97.50 97.50

1996 ------35.00 35.00

1995 ------51.25 26.25

1994 ------551.25 --

1993 ------96.46 21.25

1992 ------401.04 68.75

1991 ------1,046.47 90.00

1990 ------148.75 107.50

1989 ------1,051.77 156.25

1988 ------401.14 --

1987 ------2,095.73 634.69

1986 ------1,505.94 380.51

54,257.75 61,007.98 205.98 181.82 25,569.56 24,449.08

* 2005 3rd & 4th quarter Real Estate & Personal Property taxes issued 12/31/04.

2005 Motor Vehicle taxes not issued until February 2005.

Respectfully submitted,

Lee Mikkola, Collector

ANNUAL REPORT OF THE TREASURER

During 2004 the status of the Town’s cash is a very strong one. There is no debt except the debt service of the North Middlesex Regional School District and the interest-free internal borrowing in anticipation of receipt of Chapter 90 funds reimbursement. Thanks to the Collector’s and Taxpayers’ conversion from biannual tax payments to quarterly tax payments, there has been no need to borrow in anticipation of revenues. This action has saved the Town approximately $5,000 a year in interest.

There has been considerable progress made in the area of Tax Title collections and foreclosures. The collections in 2004 totaled $50,304.00. In December, twelve foreclosed parcels were placed for initial auction, resulting in the sale of two properties for a combined price of $9,424.27. In addition, three parcels were conveyed to the Town and placed in the custody of the Conservation Commission for protection.

The General Funds that were received and expended from January 1, 2004 through December 31, 2004 left the Town with a positive cash balance of $609,689.00.

The balances of the following special trust funds in the custody of the Treasurer are all as of December 31, 2004. The John Forbes Memorial Clock Fund had a balance of $1,072.27. The other trusts are as follows:

School Funds

Balances

Cemetery Funds

Balances

The remaining two special funds are the Open Space Acquisition Fund at $15,766.67 and the Stabilization Fund at $499,035.50.

All investment funds were reviewed and reinvested to maximize yields in November. The two month gain over yields from their prior placements totaled approximately $2,000.00. This continuous investment optimization could result in returning over $12,000.00 to the Town each year.

Respectfully submitted

Kate E. Stacy, Treasurer

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